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DefinitionBitcoin

Bitcoin

A decentralized digital currency and payment network that lets people send value without relying on a bank or central authority.

Bitcoin is a decentralized digital currency and the name of the network that records and transfers it. Instead of being issued by a government or managed by a company, Bitcoin runs on open-source software operated by participants around the world. Transactions are grouped into blocks and added to a public ledger called the blockchain, using a process known as mining to help secure the network and agree on the order of transactions.

Bitcoin matters because it introduced a way to send scarce digital value over the internet without needing a bank, card network, or payment app as the central trusted party. People use it for peer-to-peer payments, long-term savings, donations, cross-border transfers, and as a base asset in parts of the crypto ecosystem. A practical comparison is digital cash: if you control your private keys, you can send Bitcoin directly to another person, but unlike physical cash, the transfer is recorded on a public blockchain and usually cannot be reversed.

Other terms in Bitcoin